Understanding debt-to-income ratio (DTI) is one of the most important and overlooked parts of getting ready to buy a home. It plays a huge role in whether a mortgage gets approved and whether the payment will actually feel affordable once it kicks in.
This video breaks down how lenders view DTI, including both front-end (housing-only) and back-end (housing plus all debts) ratios. It also covers how different income types (salary, commission, hourly, self-employed) are calculated and why a lot of people misjudge their numbers.
Real-life variables like daycare, student loans, and credit card payments are all factored in (or sometimes not), and that can really shift what’s realistic. There’s also a walk-through on how to calculate DTI manually and why it’s worth doing — not just to qualify, but to feel financially stable in the home.
Our goal is simple: help people buy homes without ending up house-poor.
Need help getting to that next step? Let us help you. 786-933-2077
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